Thursday, December 2, 2021

Polygon can hit $3.50 in Q4 as MATIC’s 20% weekly rally triggers bull flag setup

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Polygon (MATIC) has the potential to succeed in $3.50 by the top of this yr because it charts a sample that’s beginning to resemble a bull flag.

Intimately, bull flags are bullish continuation patterns that emerge when the worth consolidates following a powerful transfer larger. In doing so, the worth tends to development decrease whereas abandoning a sequence of upper lows and decrease lows.

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A breakout happens when the worth closes above the flag’s higher trendline (or resistance). In different phrases, the worth can rise by as a lot as the peak of the earlier uptrend, often known as a flagpole.

It seems MATIC has been painting a similar pattern even because it established a file excessive of $2.89 on Could 17, following a $2-long upside run (the flagpole).

MATIC/USD weekly worth chart that includes bull flag setup. Supply: TradingView

Because of this, ought to MATIC’s worth break above the flag’s resistance decisively, it is going to shift its upside goal to about $2 above the breakout stage. That will roughly put the Polygon token en path to $3.50.

The pullback angle

The bullish setup appeared as MATIC surged by around 30% on Friday to succeed in a one-month excessive close to $1.65.

Nonetheless, the cryptocurrency skilled a slight correction close to the mentioned peak stage, dropping by round 4% on profit-taking sentiment amongst daytraders. Furthermore, for the reason that correction occurred proper across the bull flag resistance, it raised the potential of prolonged selloffs forward.

Ought to a pullback occur, it is going to threat dropping MATIC to its first line of weekly assist towards its 20-week exponential shifting common (20-week EMA; the inexperienced wave) round $1.231. In the meantime, additional weak spot might shift the draw back goal to the 50-week EMA (the velvet wave) round $0.868.

Bulls have the higher hand

Along with the complete flag, MATIC painted a cup-and-handle pattern that introduced the potential of the cryptocurrency hitting $1.80 quickly.

Twitterati MK2 Buying and selling spotted the bullish reversal indicator first on the Polygon token’s each day worth chart. It confirmed the worth forming a rounding backside (cup) following an upside transfer after which portray a descending channel vary (deal with).

MATIC/USD each day worth chart that includes cup and deal with sample. Supply: TradingView

A subsequent breakout from the deal with’s buying and selling vary would sign a bullish continuation. In doing so, the worth would eye a run-up towards the extent at a size equal to the cup’s depth. Because of this, MK2 Buying and selling expects MATIC at $1.80 within the coming classes.

Macro fundamentals

The newest bout of shopping for within the Polygon market appeared after Upbit, one of many main South Korean crypto exchanges by quantity, added MATIC pairs to its buying and selling platform. Moreover, the alternate additionally listed Solana (SOL) and NuCypher (NU) pairs.

Solana was one other standout performer on Friday, with its native token, SOL, surging by over 11.5%, whereas NuCypher’s NU rallied by greater than 845% Friday after Upbit’s announcement.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it’s best to conduct your personal analysis when making a choice.